Pathos Communications (AIM:NEWS) has reported revenue of $7.3 million for the six months ended 30 June, up 14% from $6.4 million a year earlier.
Earnings (adjusted EBITDA) rose 36% to $1.7 million, lifting the margin to 24% from 20%, while reported profit before tax increased to $0.9 million from $0.8 million.
Cash receipts from customers jumped more than 80% to $7.9 million, which the AIM-listed firm said reflected improved quality in revenue sources, and net cash stood at $5.9 million at period end, down slightly from $6.2 million at the end of December but well above the $0.8 million reported a year earlier.
Repeat customers made up 36% of first-half revenue, up from 16% in the prior year, and the company signed its largest-ever contract, a one-year deal worth $0.7 million, in May.
"H1 2026 has been a period of strong delivery for Pathos with revenue, profits and cash receipts all increasing while we continued to invest the proceeds of our successful IPO behind the next phase of growth," said founder and chief executive Omar Hamdi.
The company said July was a record revenue month and trading through to the end of August remained significantly ahead of the prior year.
Pathos said its AI-driven Pressella and PathosMind platforms remain on track for general availability in the first half of 2027, and the board said it remains confident of meeting, or being slightly ahead of, full-year market expectations of $14.0 million revenue and $4.0 million adjusted EBITDA.
News Intelligence what this means for the company
Pathos Communications delivered 14% revenue growth to $7.3m in H1 2026 with adjusted EBITDA expanding 36% to $1.7m—a 4-point margin lift to 24%—while cash receipts surged 80% and repeat customer revenue nearly tripled to 36% of the mix. Management guided to full-year revenue of $14.0m and adjusted EBITDA of $4.0m in line with or slightly ahead of market expectations, and July was a record revenue month, signalling momentum into the second half.
The combination of accelerating profitability (EBITDA margin expansion despite growth investment), rising customer stickiness (repeat revenue now 36% vs. 16% a year ago), and a 7.4x cash position relative to H1 revenue ($5.9m net cash on $7.3m revenue) materially strengthens the cash generation profile post-IPO. The largest-ever contract ($0.7m, or 9.6% of H1 revenue) and July's record month suggest the business is moving beyond early-stage volatility, though AI platform monetization (Pressella and PathosMind in H1 2027) remains unproven.
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